Lord & Taylor Sold for $100M to Rental Clothing Company

Lord & Taylor is one of the nation's oldest department stores. There are now 38 remaining across the country

By Joseph Pisani •Published August 28, 2019•Updated on August 28, 2019 at 1:54 pm

What to Know

Lord & Taylor, one of the nation's oldest department stores, is being sold for $100 million to a rental clothing company

Le Tote Inc. is buying the company from Hudson's Bay Co., which gets a minority stake in Le Tote and will control two seats on its board

Lord & Taylor closed stores, including its flagship on NYs Fifth Avenue, which was shut for good earlier this year after more than a century

Lord & Taylor, one of the nation's oldest department stores, is being sold for $100 million to a rental clothing company.

Le Tote Inc. is buying the company from Hudson's Bay Co., which gets a minority stake in Le Tote and will control two seats on its board.

Lord & Taylor, founded as a dry goods store in 1826, has struggled recently as more people shop online. It has closed several stores, including its flagship on New York's Fifth Avenue, which was shut its doors for good earlier this year after more than a century in the 11-story building. There are currently 38 Lord & Taylor stores across the country.

Le Tote, created less than a decade ago in San Francisco, said Wednesday that it plans to bring clothing rental to Lord & Taylor's customers. With clothing rental, popularized by Rent the Runway and other startups, customers pay a monthly fee to get clothes shipped to them, wear a few times and then ship them back. Traditional retailers, such as Urban Outfitters and Banana Republic, are launching their own versions.

Le Tote will pay Hudson's Bay $75 million in cash when the deal closes, which is expected to happen before the holiday season. It will also pay Hudson's Bay $25 million in cash after two years.